After the disastrous start of digital payments startup Paytm, the country’s biggest IPO ever, at least a dozen Indian companies working on initial public offerings are now under additional investor scrutiny.
Offerings on the radar include Oravel Stays Ltd, operator of hotel-booking startup Oyo, which is looking to raise about $1 billion. Other large listings include API Holdings Ltd, parent of online pharmacy PharmEasy and logistics company Delhivery Ltd.
If there is less appetite for new listings then the planned small IPO could have a tough time pricing stake. Shares of Paytm rival One MobiKwik Systems Ltd have declined nearly 40% in the so-called gray market.
Paytm shares have fallen nearly 30% since starting trading last week, with Tuesday’s rebound not enough to erase the losses of the past two sessions. According to Edelweiss Financial Services Ltd, some companies that wanted to benefit from the flood of transactions in India’s fast-growing IPO market so far this year may now reconsider the timing and pricing of their issues.
Valuations are likely to become the main sticking point for those looking to tap the market. Paytm’s valuation – at around 26 times the price-to-estimated sales for FY2023 – is up nearly 4 times that of the benchmark S&P BSE Sensex index.
This story has been published without modification in text from a wire agency feed. Only the title has been changed.
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